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China SMEs hit by borrowing pains as banks made to rein in risky loans

Some are forced to borrow from private lenders, paying rates at least twice or three times higher than regular banks

Tue, Jun 27, 2017 - 5:50 AM

While China's large and state-backed entities maintain access to cash, smaller firms said that they are finding it tougher to get loans from state-owned banks.

PHOTO: REUTERS

Hong Kong

CHINA'S small to medium-sized enterprises (SMEs), already weighed down by massive debt, now also face a funding squeeze as regulators push banks to rein in riskier corporate loans - including the short-term credit on which many depend.